BETHESDA, Md. - PG&E Corporation's (NYSE: PCG) PG&E National Energy Group (PG&E NEG) today announced that in light of the recent market closure, it has extended the expiration date of its offer to exchange $1 billion of notes issued on May 22, 2001, in a private placement.

The exchange is for $1 billion principal amount of its 10.375 percent senior notes due 2011 ("new notes"). The new notes have been registered under the Securities Act of 1933, for like amounts of its existing 10.375 percent senior notes due 2011 ("original notes").

The new expiration date of the exchange offer is Oct. 1, 2001, at 5 p.m. EDT, unless further extended by PG&E NEG. The exchange offer was previously set to expire at 5 p.m. EDT today.

Except for the absence of transfer restrictions under the federal securities laws applicable to the original notes, the new notes are identical to the original notes. Except for the extension of the expiration date, all other terms and provisions of the exchange offer remain as set forth in the exchange offer prospectus previously furnished to the registered holders of the original notes.

As of the close of business Friday, Sept. 21, $689,505,000 of original notes have been tendered for exchange.

For copies of the exchange offer materials or to request assistance regarding the exchange offer, please call Wilmington Trust Company, the exchange agent for the exchange offer, at (302) 651-1562.

Headquartered in Bethesda, Md., PG&E National Energy Group develops, builds, owns and operates electric generating and natural gas pipeline facilities and provides energy trading, marketing and risk-management services in North America.